A Local Owner Of A Privately-held Video Rental Store Read In A Newspaper That The Elasticity Of Market Demand?

January 22, 2010 by  
Filed under Internet Businesses Tips

for video rentals is -.45. She thus reasoned that if she raised the price of her rentals, her total revenue would increase. So she increased her price by 20%, and her revenues fell sharply. What is your explanation for this outcome?

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